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NELLIE MAE $103 MILLION STUDENT LOAN REFUNDING BONDS RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, March 8 /PRNewswire/ -- The New England Education Loan Marketing Corp.'s (Nellie Mae) proposed $103 million student loan refunding bonds notes are rated A' by Fitch. The rating reflects Nellie Mae's high quality Federal Family Education Loan Program (FFELP) student loan portfolio, limited credit exposure, strict monitoring procedures, and strong earnings performance. Concerns focus primarily on the single product concentration and political sensitivities that could alter the structure of the student loan business. The credit trend is stable.
 Nellie Mae purchases and holds student loans guaranteed by independent, third party state guaranty agencies primarily from New England, New York, New Jersey, and California. The company is currently the fourth largest holder of student loans and the largest non-profit holder, with total student loans receivable of $1.4 billion at Dec. 31, 1992.
 In addition to the guaranty agency support, all of Nellie Mae's loans are reinsured by the U.S. Department of Education (DOE), backed by the full faith and credit of the U.S. Government. If a guaranty agency fails and the agency's obligations are not considered general obligations of the state, the DOE assumes responsibility for the loans. If an agency is considered an obligation of the state, then the state is responsible for the loans. In order to collect on the reinsurance, loans must be originated and serviced in accordance with stringent DOE guidelines. As all of Nellie Mae's loans are serviced by third party servicers, credit quality rests primarily with the servicers. Nellie Mae retains full recourse to all originators and servicers.
 Profitability is strong and improving, denoted by an increasing return on average assets that equaled 1.7 percent for the year ended Dec. 31, 1992. The growth in profitability has resulted from an improvement in the net interest margin and a significant decline in the company's servicing and administrative expenses as a percentage of the loan portfolio.
 Net assets (equity) has increased to $69.2 million at Dec. 31, 1992 from $12.5 million at Dec. 31, 1987 solely from the addition of retained earnings. Debt to net assets, while high, has improved to 20.7 times at Dec. 31, 1992 from 43.2 times at Dec. 31, 1987. However, on a risk adjusted basis, the company is well-capitalized with a total capital ratio was 22.5 percent at Dec. 31, 1992.
 -0- 3/8/93
 /CONTACT: Valerie Gerard, 212-908-0577 or Mary Griffin, 212-908-0537, both of Fitch/


CO: New England Education Loan Marketing Corp. ST: IN: FIN SU: RTG

WB -- NY047 -- 3974 03/08/93 11:37 EST
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Date:Mar 8, 1993
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/FROM PR NEWSWIRE NEW YORK 800-776-8090/ TO BUSINESS EDITOR:.

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